ASX:MML

Stock Analysis Report

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Executive Summary

Medusa Mining Limited, together with its subsidiaries, engages in the exploration, evaluation, development, mining, and production of gold properties. More Details

Rewards

Trading at 74.4% below our estimate of its fair value

Risk Analysis

MML passed our risk checks.


Snowflake Analysis

Undervalued with excellent balance sheet.


Similar Companies

Share Price & News

How has Medusa Mining's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MML has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

8.9%

MML

-0.2%

AU Metals and Mining

0.01%

AU Market


1 Year Return

13.2%

MML

15.3%

AU Metals and Mining

-5.7%

AU Market

Return vs Industry: MML underperformed the Australian Metals and Mining industry which returned 17.4% over the past year.

Return vs Market: MML exceeded the Australian Market which returned -5.6% over the past year.


Shareholder returns

MMLIndustryMarket
7 Day8.9%-0.2%0.01%
30 Day-0.6%-1.5%5.4%
90 Day12.5%-0.3%4.0%
1 Year13.2%13.2%20.7%15.3%-2.4%-5.7%
3 Year125.0%125.0%60.6%38.8%18.0%3.0%
5 Year42.5%42.5%131.6%87.5%42.1%13.2%

Price Volatility Vs. Market

How volatile is Medusa Mining's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Medusa Mining undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MML (A$0.86) is trading below our estimate of fair value (A$3.34)

Significantly Below Fair Value: MML is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MML is good value based on its PE Ratio (3.6x) compared to the AU Metals and Mining industry average (12x).

PE vs Market: MML is good value based on its PE Ratio (3.6x) compared to the Australian market (21.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MML's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MML is good value based on its PB Ratio (0.8x) compared to the AU Metals and Mining industry average (2.6x).


Next Steps

Future Growth

How is Medusa Mining forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

3.4%

Forecasted Materials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Medusa Mining has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Medusa Mining performed over the past 5 years?

60.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MML has high quality earnings.

Growing Profit Margin: MML's current net profit margins (23.9%) are lower than last year (28.3%).


Past Earnings Growth Analysis

Earnings Trend: MML has become profitable over the past 5 years, growing earnings by 60.2% per year.

Accelerating Growth: MML's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MML had negative earnings growth (-3.3%) over the past year, making it difficult to compare to the Metals and Mining industry average (22.2%).


Return on Equity

High ROE: MML's Return on Equity (22.3%) is considered high.


Next Steps

Financial Health

How is Medusa Mining's financial position?


Financial Position Analysis

Short Term Liabilities: MML's short term assets ($64.7M) exceed its short term liabilities ($22.5M).

Long Term Liabilities: MML's short term assets ($64.7M) exceed its long term liabilities ($9.6M).


Debt to Equity History and Analysis

Debt Level: MML's debt to equity ratio (3.6%) is considered satisfactory.

Reducing Debt: MML's debt to equity ratio has increased from 3.1% to 3.6% over the past 5 years.

Debt Coverage: MML's debt is well covered by operating cash flow (986.8%).

Interest Coverage: MML earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Medusa Mining current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate MML's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate MML's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MML's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MML's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: MML is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MML's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.0yrs

Average management tenure


CEO

Andrew Teo (67 yo)

0.25

Tenure

US$98,152

Compensation

Mr. Boon San Teo, also known as Andrew, B.Com, UWA, (CPA), has been Independent Non-Executive Chairman of Medusa Mining Limited since March 1, 2019 and its Interim Chief Executive Officer since July 20, 20 ...


Leadership Team

NamePositionTenureCompensationOwnership
Boon Teo
Independent Non Executive Chairman & Interim CEO0.25yrUS$98.15k0.082%
$ 145.3k
James Llorca
General Manager of Geology & Resources4yrsUS$306.03kno data
Peter Alphonso
Company Secretary12.83yrsUS$332.75k0.061%
$ 109.0k
Raul Villanueva
Executive Director & President of Philsaga Mining Corporation7.75yrsUS$432.09k0.024%
$ 42.7k
Patrick Warr
Chief Financial Officer0.083yrno datano data

4.0yrs

Average Tenure

Experienced Management: MML's management team is considered experienced (4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Boon Teo
Independent Non Executive Chairman & Interim CEO0.25yrUS$98.15k0.082%
$ 145.3k
Raul Villanueva
Executive Director & President of Philsaga Mining Corporation7.75yrsUS$432.09k0.024%
$ 42.7k
Roy Daniel
Independent Non-Executive Director4.92yrsUS$76.38k0.48%
$ 855.0k
Simon Mottram
Independent Non-Executive Director0.33yrUS$3.75k0.048%
$ 85.5k

5.9yrs

Average Tenure

Experienced Board: MML's board of directors are considered experienced (5.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MML insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Medusa Mining Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Medusa Mining Limited
  • Ticker: MML
  • Exchange: ASX
  • Founded: 2002
  • Industry: Gold
  • Sector: Materials
  • Market Cap: AU$177.664m
  • Shares outstanding: 207.79m
  • Website: https://www.medusamining.com.au

Number of Employees


Location

  • Medusa Mining Limited
  • Suite A
  • Level 1
  • Como
  • Western Australia
  • 6152
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MMLASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
MQGDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
MDSM.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
MMLCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992

Biography

Medusa Mining Limited, together with its subsidiaries, engages in the exploration, evaluation, development, mining, and production of gold properties. The company also explores for silver deposits. It hold ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 10:41
End of Day Share Price2020/10/20 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.